GEORGIA PORTS AUTHORITYGriff Lynch, Executive DirectorOctober 15, 2019

ECONOMIC DEVELOPMENT OUTSIDE THE GATE

GPA’s Dedicated Economic Development Team builds relationships with all parties

One stop resource for:• Site options unique to customer needs• Existing or planned warehouses• Port-related info and logistics analysis• Area demographics

GPA Economic Development Team provides info to:

State and local dev. authorities

Engineering firms

Site consultants

Property Developers

BCO/ Manufacturers/ 3PLs

Econ. dev. leads sourced from relationships with:

GA Ports internal team:• BCO Sales• Business Development• Carrier Sales

GEORGIA’S PORT TAX BONUSLocating in GA + Creating

jobs in GA + Utilizing GA’s Ports =

Tax incentives that save companies money

“Port Tax Bonus” offers additional tax credits to companies that increase volume through port by 10% in one year

CASE STUDY: THE SAVANNAH MODEL

20,000 acres within 30-mile radius

Top 5 Growth MarketsNet absorption as a % of inventory Greenville/

Spartanburg/Anderson

Reno/Sparks

Charleston

Salt Lake CitySavannah2.4%

2.2%

2.7%

2.3%

9.2%Source: Colliers International

Savannah RiverInternational

Trade Park

Savannah RiverInternational

Trade Park

Home Depot: 400K sq. ft.IKEA: 750K sp. ft.Shaw: 2.1M sq. ft.Target: 2.1M sq. ft.Wayfair: 1M sq. ft.Other: 1.5M sq. ft.

Total: 7.85M sq. ft.

WORKING AS ONE TEAM TO PROMOTE NEW BUSINESS DEVELOPMENT IN GEORGIA

How Ports Drive Economic DevelopmentDr. Walter Kemmsies

JLL Ports Airports and Global Infrastructure

Dr. Walter KemmsiesManaging Director and Economist for JLL’s Port Advisory Group

Walter executes initiatives for JLL’s public and private sector clients who have interests in or properties proximate to seaports, inland hubs and airports. He has expanded the JLL’s expertise from supply chain advisory services to the infrastructure sector to assist both public agencies and investors in long term strategic planning/capital investment, underwriting, financing and evaluation of investment vehicles and opportunities.

Walter provides substantial support to the freight movement industry via publications, presentations at major industry conferences, and advising the U.S. Department of Commerce on supply chain competitiveness. He recently testified to the U.S. Senate Transportation and Commerce Subcommittee on issues affecting the freight industry.

Prior to JLL:• Former Chief Economist for Moffat & Nichol, a leading global infrastructure advisement

• Former Head of European Strategy at JP Morgan in London

• Former Head of Global Industry Strategy at UBS in Zurich and London.

Summary• Port gateways are portals to the 7.5 billion

people in the global market place

• A large efficient port gateway requires leadership to orchestrate transportation services, industrial real estate development, financial markets and public sector agencies

• The port authority’s sphere of influence extends deep inland

World trade created the largest global middle class ever

Source: WTO, OECD, Census Bureau, Kemmsies/JLL

World Real GDP and Trade Volume Indexes 1950-2017E

World Population and OECD Global Middle Class Projections

1.8

3.0

3.8

4.6

5.4

6.97.3

7.68.0

8.3

0

1

2

3

4

5

6

7

8

9

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Billi

ons

Global Middle Class World Population

0

10

20

30

40

50

60

70

80

90

1950

1953

1956

1959

1962

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

2004

2007

2010

2013

2016

Volu

me

Inde

x

GDP Total Agriculture Fuels & Mining Manufactured

Relative to GDP GrowthGDP 3.7% 1.0 Manufactured Goods 7.0% 1.9 Fuels and Mining Products 3.8% 1.0 Agricultural Goods 3.5% 1.0 Total Trade 5.8% 1.6

1950 - 2015 CAGR

China

Korea, Taiwan

Japan, Brazil

Opening the world markets facilitated more manufacturing jobs in developing countries, allowing for the creation of the global middle class

DistributionCenters

NavigationChannel

TerminalOperator

Inland Port

Rail

RoadUSACE / COAST GUARD

DOTInterstates & State Highway s

Ocean Carrier

What is a port gateway?

Case Study – Appalachian Regional Port

• These importers/exporters are hundreds of miles away from major container ports.

• Outside of a few metropolitan areas, employment options in this region are scarce outside of agriculture, forestry and mining.

• How to improve employment and income by connecting it to world trade?

Map of Importers and Exporters

ARP

• The Appalachian Regional Port (ARP) offers an efficient solution to hours of service/ELD supply chain challenges.

• Each round-trip container moved via the ARP will offset 710 truck miles on Georgia highways.

• Offers exclusive CSX service on a direct, 388-mile rail route to/from the Georgia Ports Authority’s Garden City Terminal.

• Provides an alternative to an all-truck dray to/from the deepwater Port of Savannah for target markets in Georgia, Alabama, Tennessee and Kentucky.

• Import and export intermodal service available.

• Located in an industrial belt, including the production and export of carpet and flooring, automobiles and tires.

• Sits on 42 acres in Northwest Georgia’s Murray County. The site features easy access to Interstate 75 and U.S. 411, as well as direct rail service to Savannah.

Appalachian Regional Port Authority

Port-centric industrial real estate trends

Summary• Port gateways are portals to the 7.5 billion

people in the global market place

• A large efficient port gateway requires leadership to orchestrate transportation services, industrial real estate development, financial markets and public sector agencies

• The port authority’s sphere of influence extends deep inland

FRAN INMANSenior VP, Majestic Realty Co.

Also serves as CHAIRMAN of the California Transportation Commission The 13-member California Transportation Commission (CTC) is responsible for

programming and allocating funds for the construction of highway, passenger rail, transit and active transportation improvements throughout California.

1998Atlanta

YEARS WE OPENED NEW OFFICES

2008Bethlehem

1999Dallas

1948Los Angeles

2017Portland

2015Fort Worth

1996Denver

1993Las Vegas

2017Laredo

AZ1%

CA46%

CO6%

FL4%

GA18%

IL0%

NV8%

OR1%

PA6%

TX9%

UT1%

WI0%

MRC PORTFOLIO BY STATE

Citrus Plaza & Mountain Grove: The Entitlement Record

JUNE 2003 TODAY

• Attitude towards FreightSTADIUM

Las Vegas, Nevada

• Attitude towards Freight

City of Industry, California

Participating Ground Lease

• Participating Ground Lease Model works well with long term owners. Who is more long term than Government?

• 14 Million Square Feet Developed (So Far)• Executed in:

• Clark County, NV• City of Industry, CA• Chino, CA• Fulton County, GA

Questions?